JOINT LIABILITY GROUP LOAN
Joint Liability Group is a homogeneous group of micro entrepreneurs with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group from which small loans are given to the members for meeting their productive and emergent credit needs at such rate of interest, period of loan and other terms as the group may decide.
Features and Benefits
- Can be opened by all individuals including Minors under Guardianship
- Minimum deposit amount can be invested from Rs 500/- and in multiples of Rs 100/-.
- Deposit period ranges from 12 months to 60 months
- For Women Depositors 0.50% and for Senior Citizen Depositors 0.75% Extra interest on above rates
- Nomination Facility Available, Loan Facility Available.
- Pre-Mature Closure is allowed, subject to applicable norms.
Terms and Conditions
- For delay in payment of monthly installments, a penalty will be charged at the rate of Rs 2/- for every Rs 100/- per month.
- A fraction of month will be treated as full month for the purpose of calculating penalty. 2% Pre-Closure Charges applicable
- The Period and Installment amount is Fixed at the time of Deposit account opening. There would be no changes in that.
- Its mandatory to become as a member of the CITO Nidhi Ltd. Member should subscribe for minimum 10 Shares with face value of Rs 10/- per share and total value of Rs 100/-. Should comply with RBI KYC norms and should provide original KYC documents along with photocopy for verification.
- Interest will be calculated at the rate applicable for the period the deposit has actually remained with the Bank. The rates are subject to change from time to time and same will be notified. All Guidelines applicable with regard to acceptance, payment and transfer of term deposits will apply to the deposits acceptance under this scheme.
- All resident Individuals Self-employed can avail as a Group
- To build mutual trust and confidence between the bankers and the rural/ urban poor.
- To encourage banking activity both on thrift as well as credit side in a segment of the population that the formal financial institutions usually find difficult to cover.
- To meet the credit needs of the poor by combining flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institutions.
- Simple Documentation. Easy EMI payments Option.
- Pre-Mature Closure is allowed, subject to applicable charges.
- CIBIL deviation allowed on satisfactory justification
- For delay in payment of monthly installments, a penalty will be charged at the rate of Rs 2/- for every Rs 100/- per month.
- A fraction of month will be treated as full month for the purpose of calculating penalty. 2% Pre-Closure Charges applicable
- The Period and Installment amount is Fixed at the time of Deposit account opening. There would be no changes in that.
- Its mandatory to become as a member of the CITO Nidhi Ltd. Member should subscribe for minimum 10 Shares with face value of Rs 10/- per share and total value of Rs 100/-. Should comply with RBI KYC norms and should provide original KYC documents along with photocopy for verification.
- Interest will be calculated at the rate applicable for the period the deposit has actually remained with the Bank. The rates are subject to change from time to time and same will be notified. All Guidelines applicable with regard to acceptance, payment and transfer of term deposits will apply to the deposits acceptance under this scheme.
Interest Rates Chart for Different Tenures
| Loan Amount | Minimum Rs 50,000/- Maximum Rs 2.00 lakh |
| Repayment Tenor | 12 Months / 18 Months / 24 Months |
| Processing Charges | 3.00% on Loan Amount + GST |
| Foreclosure Charges | 4% on Loan outstanding. |
| Primary Security | Hypothecatin of Consumer Durables in favor of CITO Nidhi. |
| Guarantee | Remaining members should stand as guarantors |
| Collateral Security | Will be sought if required and based on quantum of Finance |
| Co-Applicant | Co-Applicant should be Spouse or any Blood relative acceptable to Bank. |
| Other Terms & Conditions |
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